Video Corporation Video Corporation Has Two Product Lines: LCD Televisions

question 55

Multiple Choice

Video Corporation Video Corporation has two product lines: LCD televisions and projection televisions. The company has budgeted the following production and overhead costs for the upcoming year:
Refer to Video Corporation. If the company uses total direct labor hours to allocate factory overhead, the machine maintenance cost allocated to projection TVs would be:

• A) $ 72,000
• B) $108,000
• C) $110,769
• D) $124,615

---

Definitions:

Shares Outstanding

The total number of a company's shares that are currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily reflect market value.

Stock Split

A corporate action where a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of ownership remains the same.

Liquidating Dividend

A return of capital to shareholders, usually during the dissolution of a company, exceeding the original investment amount.